Abstract

The article discusses the manifold interconnections between Italian insolvency Law, with its favor towards firms in difficulty as going concern, and Competition and State aid Law. Beyond the original model of perfect competition, in a market where only inefficiencies could explain insolvency, unavoidable competitive distortions due to the prolonged permanence of insolvent undertakings on the market shall be limited to the minimum. Irrespective of possible changes in the titularity of these activities, it is essential in the light of a correct balance of the constitutional principles at stake to reiterate that full compliance is necessary with all the applicable rules on cartels, M&A, unfair competition and State aid provisions, in particular on firms in difficulty and the recovery of illegal aid.